When you emigrate from South Africa, one of the most confusing (and important) concepts you’ll run into is tax residency. Many people assume that once they’ve left the country, or once their visa is granted overseas, they “automatically” become non-resident for tax – but that’s not how SARS sees it.
Your SARS tax residency status determines whether you’re taxed on your worldwide income or only on South African–sourced income, and it also affects things like “exit tax” when you leave. Understanding the basics – and getting proper advice early – can save you a lot of stress and unexpected tax bills.
This article is an overview for emigrants, not formal tax advice. It will help you understand the concepts and highlight where documentation and formalities matter. For a wider view of the emigration journey, start here:
👉 Emigration Guide
What does “tax resident” mean in South Africa?
South Africa uses a residence-based tax system. In simple terms:
- Tax residents are generally taxed on their worldwide income (subject to exemptions and double tax agreements).
- Non-residents are taxed only on South African–sourced income (for example SA rental, SA employment, SA interest above limits).
You are a South African tax resident if you meet either of these tests:
- Ordinarily resident test (where your real “home” is), or
- Physical presence test (days spent in South Africa over six tax years).
If you meet one of those, SARS treats you as a resident – even if you are living abroad for now.
The “ordinarily resident” test
This is the primary test. SARS and the courts look at where your real home is – the place you will “naturally and as a matter of course” return to after your travels.
They consider factors such as:
- Where your spouse/partner and minor children live
- Where you own or rent a long-term home
- Where your main work or business interests are
- Where most of your assets are held
- Whether you intend to return to South Africa
If South Africa is still your “base” in this sense, you are probably ordinarily resident, even if you spend a lot of time overseas.
A person who has emigrated permanently, moved their life overseas, and has no real intention to return may cease to be ordinarily resident from the date they leave – but SARS will want evidence, and it’s not automatic.
The physical presence test
If you are not ordinarily resident, you can still become a tax resident by spending enough time in South Africa. This is the physical presence test. You are a resident if you:
- Spent 91 days or more in South Africa in the current tax year; and
- Spent 91 days or more in each of the previous five tax years; and
- Spent more than 915 days in total over those five preceding years.
All three conditions must be met.
You stop being a resident under this test if you are physically outside South Africa for a continuous period of at least 330 full days. In that case, you are treated as non-resident from the day you left.
What does “non-resident” actually mean?
You are a non-resident for tax when:
- You are no longer ordinarily resident in South Africa, and
- You do not meet the physical presence test and/or
- A double tax agreement (DTA) says you are exclusively resident in another country.
Once SARS recognises you as a non-resident:
- You are no longer taxed on worldwide income by South Africa.
- You are taxed only on South African–source income (for example, SA rental or certain SA interest).
- You may have triggered an “exit tax” (capital gains tax on deemed disposal of most worldwide assets on the day before you ceased to be resident).
The year you cease tax residency can be complex because you are treated as resident for part of the year and non-resident for the rest – with both periods reflected in your ITR12.
Ceasing tax residency: the formal SARS process
A crucial point for emigrants: you are NOT non-resident just because you left the country. SARS must be formally notified, and your status updated on their system.
Currently, SARS expects you to inform them in one of two ways:
- On eFiling via RAV01 – by capturing the date you ceased to be a resident.
- On your ITR12 tax return – by indicating that you ceased to be resident during that tax year.
SARS will then:
- Open a case for “cease to be resident”;
- Request supporting documents, which may include:
- A signed declaration stating on what basis you ceased residency;
- A detailed motivation letter;
- Copies of passports and a travel schedule;
- Proof of foreign residence (visa, permanent residence, foreign employment contract, lease, etc.).
- Issue a letter confirming that you are now non-resident for tax purposes, if they accept your application.
That letter is often used when dealing with banks, advisors and foreign authorities. Keeping your documents in order (passports, unabridged certificates, police clearances, etc.) makes this process much smoother.
For broader documentary prep when leaving South Africa, see:
👉 Which documents you need to get apostilled when moving overseas
The “exit tax” when you become non-resident
When you cease to be a South African tax resident, the law generally treats you as if you sold most of your worldwide assets the day before you became non-resident. This is often called the exit tax or deemed disposal.
In simplified terms:
- You are deemed to dispose of your worldwide assets (except South African immovable property and certain other exclusions).
- Any growth in value up to that point may trigger capital gains tax (CGT).
- The exit tax is declared in your tax return for the year you ceased residency.
This is a specialist area, and it’s wise to get advice from a qualified tax practitioner or cross-border tax firm before you finalise your plans.
Why tax residency matters for emigrants
Understanding your SARS tax status affects:
- How you are taxed – worldwide vs SA-source only.
- Whether and when exit tax applies.
- How you report income in the year you leave and in future years.
- Money transfers and exchange control (banks often ask for proof of non-residency).
At the same time, destination countries will look at your documents for visas and registration:
- Unabridged birth and marriage certificates
- Police clearances
- Academic and professional qualifications
Apostil.co.za can’t give tax advice or deal with SARS on your behalf, but we can make sure your supporting South African documents are retrieved and legalised correctly for overseas use:
👉 Apostille & authentication services
👉 Police Clearance (SAPS)
👉 Unabridged certificates – overview
How Apostile.co.za can help?
Tax residency vs non-residency is not just a technical label – it shapes how your income, investments and emigration are taxed, both now and in the future. You remain a South African tax resident until SARS accepts that you’ve ceased to be one, so it’s important to follow the proper process and keep your documentation in order.
Apostil.co.za can’t replace a tax advisor, but we can ensure that your Home Affairs records, police clearances, and other critical documents are obtained, apostilled and ready for whatever your new country (and SARS) needs to see.
Need help with the documentation side of your emigration?
Reach out to the team at Apostil.co.za for fast, professional assistance with certificates, police clearances, apostilles and other emigration paperwork:
👉 Contact Apostil.co.za
